Abu Dhabi hotel guests to pay new fee

Nikhil Pereira, May 31st, 2016

Hotel guests in Abu Dhabi will start paying a municipal fee of 4% of their hotel bill and a US $4.08 (AED15) charge per night per room starting 1st June 2016, the Department of Municipal Affairs and Transport and Abu Dhabi Tourism and Culture Authority (TCA Abu Dhabi) has announced.

According to WAM, the TCA Abu Dhabi has formally notified hotels and tourist facilities of the decision.

In April, Hotelier reported that the fee was going to be levied in addition to the city tax of 6% and a 10% service charge that hotels already charge guests in the capital.

The TCA Abu Dhabi will soon hold workshops to introduce the municipal fee collection and deposit mechanisms. Work is under way to set out procedures for fee collection as set forth in the resolution of the chairman of the Executive Council No 15/2016, published in the official gazette.

TCA Abu Dhabi is currently charting out guidelines and fee collection structures on behalf of the Department of Municipal Affairs and Transport, which comprises the three municipalities of the emirate: Abu Dhabi City Municipality, Al Ain City Municipality and the Western Region Municipality.

Levying the new fees is in line with charges imposed on hotel guests in other destinations in the region and is standard practice in the hospitality services sector worldwide, the Department of Municipal Affairs and Transport said.

The municipality will use the collected fees to boost the sustainable development of Abu Dhabi's tourism infrastructure and enhance the services offered to hotel guests and customers.

In the same context, Abu Dhabi City Municipality said the municipal fees imposed on hotels are minimal and will not constitute a financial burden on hotel guests, given that the hotel charge per night in the emirate is the least compared to regional markets.

Hotelier also previously reported that the government will introduce Value Added Tax (VAT) across the UAE by 2018, which will include the hospitality industry as well.